By Marianne White
Binance is a trading platform exclusive to cryptocurrencies. It is one of the world’s largest cryptocurrency exchanges with $6 billion in assets traded within 24 hours and millions of users per week signing up. The name comes from a blending of the words binary and finance. Binance also has a coin of the same name (BNB) that is traded and used on the exchange.
The token was launched during an ICO in July of 2017. It offered 10% ($20 million) BNBs to angel investors, 40% ($80 million) to the founding team, and the last 50% ($100 million) to the participants of the ICO process. The value of the coin has increased dramatically and has become one of the top 30 cryptocurrencies since the ICO just over a year ago.
What is Binance coin and what is it used for? BNB is an ERC 20 token based off of Ethereum. The most important usage of the BNB token is being the gas powering system for the entire Binance ecosystem. The coin can be used to pay fees on the exchange which include trading fees, transaction fees, listing fees, etc. Binance also offers a rebate as an incentive to pay the fees with BNB. The discount would work as follows: First year membership with Binance, fees are discounted 50% when BNB is used, then every year after that, the fee discount decreases and by the fifth year the fee will no longer be discounted.
They make is extremely easy to get the discount. All that needs to be done is keep the BNB tokens in the exchange wallet and the discount will automatically be applied. The feature can also be turned off if a user wants to keep their Binance coins. Because BNB is an ERC 20 token, it can be withdrawn and stored in an Ethereum, Trezor, or Ledger wallet.
The platform also has a repurchasing plan in which it will put 20% of its profits to buy back BNB tokens and destroy them until a max of 50% of the coins are bought back. This process will leave 100 million BNBs only which will help it maintain a considerable value. So far, Binance has destroyed $30 million or 2,220,314 BNB.
The token has gained support through partnerships with Asia’s high-end video streaming platform Uplive which sells virtual gifts for the BNB token to Uplive’s 20 million users. Another strategic partnership was with the country Monaco - the pioneers of cryptocurrency payments - and allows people to use BNB through its platform, mobile app, and VISA debit card. Binance also has future plans to develop a new decentralized exchange known as Binance Chain. This will use the BNB token to power it, and increase the coin’s demand and value.